Does my yacht NEED management?
To decide whether or not you need yacht management you should consider the legislation, the logistics and the practical aspects of yacht management:
YACHT MANAGEMENT LEGISLATION
a. Shore-based Management is mandatory for commercially registered and operated yachts of 500 Gross Tonnage (GT) and above.
b. The OWNER, or MANAGER must assume responsibility for the operation of the vessel and all the duties imposed by the International Safety Management (ISM) Code.
c. Subject to a successful audit, a Document of Compliance (DOC) will be issued to the MANAGER by the Flag Administration (or Recognised Organisation) to confirm compliance with the requirements of the ISM Code.
d. All yachts of 500GT and above that are engaged in trade must be operated by a company holding a DOC.
e. Commercially operated yachts below 500GT are required to employ a Safety Management System and implement a clearly-defined Health & Safety Protection Policy. If a Yacht Management Company is not engaged, then the OWNER is accountable for ensuring the yacht is properly maintained, operated by qualified personnel and in full compliance with all relevant legislation.
YACHT MANAGEMENT LOGISTICS:
f. Management of yacht operations is a specialist vocation and likely to be outside the field of knowledge and experience of the OWNERâ€™s office personnel.
g. The yacht is a 24-hour/7-day per week operation, requiring shore-based support personnel to be on call outside of normal office hours.
h. The OWNERâ€™s office may be located in a different time zone to the yachtâ€™s area of navigation.
i. The OWNERâ€™s office may operate in a different language to the yacht personnel.
PRACTICAL ADVANTAGES OF YACHT MANAGEMENT
j. The OWNER can receive professional advice from the yacht manager in order to make informed decisions on all operational matters and reduce the financial impact of ownership.
k. The OWNER can engage a third party COMPANY to take responsibility and protect the ownership from liability.
l. A Yacht Manager can create an additional degree of separation between OWNER and employee to maintain authority and privacy.
m. A Yacht Manager can reduce the workload on the crew and the remove the requirement for intervention by the OWNER.